Kazakhstan Taps Solana, Mastercard for Tenge Stablecoin

Kazakhstan’s central bank has launched a pilot project with Solana and Mastercard, featuring a new Stablecoin pinned to local Fiat currency.

The National Bank of Kazakhstan announced the launch of the Stablecoin project within the framework of the digital asset regulation sandbox, according to a statement shared with the Cointelegraph on Tuesday.

The new EVO (KZTE) Stablecoin is pinned to the Kazakhstani Tenge Currency and is issued with the support of Solana and Mastercard by Sandbox participants Intebix Crypto Exchange and local lender Eurasian Bank.

Based on the Solana blockchain, KZTE will soon live within the central bank’s regulatory sandbox, and MasterCard is set up to connect KZTE with global Stablecoin publishers, Intebix founder Talgat Dossanov told Cointelegraph.

National Stablecoin to bridge Crypto and Tradfi

Kazakhstan’s Evo Stablecoin is said to be “national stability,” designed to connect crypto innovation with traditional funds.

KZTE Stablecoin use cases include expanding cryptocurrency channels, potential cryptocurrency exchanges, and support for transactions with crypto cards.

“This project is part of the National Bank’s strategy to build a national digital asset ecosystem and to promote the development of innovative digital tools and the digital asset market in Kazakhstan,” the announcement said.

Although Evo Stablecoin is technically issued by Intebix and Eurasian Bank, Kazakhstan National Bank is taking part in the project by providing a regulatory regime that allows issuance and testing.

“This is the first case where central banks have played an active role in issuing stubcoins,” Dosanov told the Cointelegraph.

Kazakhstan’s first stub coin

“Today we are launching Kazakhstan’s first stubcoin, derived from the national currency Tenge, within the National Bank’s regulatory sandbox,” National Bank Governor Timur Suleimenoff reportedly said at the EVO opening event on Tuesday.

Suleimenov emphasized that the digital age presents both challenges and opportunities, and that digital assets and blockchain technology play a central role in providing new services, strengthening financial inclusion and driving the overall progress of the country.

Kazakhstan’s Evo Stablecoin launch coincides with the country’s ambitious digital assets agenda, including a study of the concept of a state-run crypto-protected area.

Related: Kazakhstan’s president is seeking national crypto preparation and digital assets law by 2026

In early September, Kazakhstan’s Astana Financial Services Authority officially approved the use of Stablecoins on USD pages, including Tether USDT (USDT) to pay licensing and supervisory fees.

Kazakhstan also emerged as a global leader in Bitcoin (BTC) mining, becoming one of the largest BTC mining countries due to its mining hashrate distribution in 2022, gaining a 13% share.

Kazakhstan is also moving on its central bank digital currency (CBDC), launching Digital Tenge in November 2023. The initiative has brought about significant improvements to the VAT refund processing, the National Bank’s chief executive said last year.